IDB Invest and Banco Solidario announce the issuance of a gender and inclusion social bond in Ecuador. The issuance issued by Banco Solidario for an amount of $30 million will be fully subscribed with an investment from IDB Invest, as detailed by the international organization through a statement.
The resources from the placement of the bonds will be used to increase credit to microenterprises owned by women and the elderly, and will support Banco Solidario’s financial inclusion strategy through loans to microentrepreneurs and migrants without access to the financial system.
The CFN and Banco Bolivariano signed an agreement to give loans to MSMEs for $30 million
This operation is expected to contribute to six United Nations Sustainable Development Goals (SDGs): end of poverty (SDG 1), gender equality (SDG 5), decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9), reduction of inequalities (SDG 10) and alliances to achieve the objectives (SDG 17).
Meanwhile, Banco Solidario’s current inclusion rate is 22.6%, and it also has one of the lowest average amounts of credit in the Ecuadorian financial system with the microcredit product, through which it serves entrepreneurs with average amounts of $3,500 credit for your micro-enterprises with a maximum of $100,000 in annual sales. 57% of those who access microcredit are women.
The general manager of Banco Solidario, Fidel Durán, pointed out that it was the first Bank with a social mission and since its creation it paved the way for inclusion by combining financial profitability with social impact. pic.twitter.com/krWoJ1aler
— Solidarity Bank (@solidarioec) December 16, 2022
According to IDB Invest, the transaction also includes advisory services to help Banco Solidario strengthen its savings strategy with a focus on women and young people in vulnerable conditions.
“In addition, a value offer in non-financial services will be designed for the migrant segment with the aim of strengthening their microenterprise businesses, and thus facilitate their financial inclusion through credit services,” reported the entity, which has additionally advised the Ecuadorian bank in the design of the methodological framework for the use of funds, which contains the criteria for selection, monitoring and evaluation of projects aligned with the Principles of Social Bonds of the International Association of Capital Markets.
Banco Solidario obtained an independent verification of the methodological framework, known as a Second Party Opinion, issued by S&P and required for thematic issuances.
Source: Eluniverso
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